Macro-economic overview

Around 130 Danish companies are currently present in the Vietnamese market, and more are on their way. Vietnam presents a dynamic market with high economic growth rates, an estimated growth rate of 6.4% in 2016, and a population of 90 million people, 50% of which are under the age of 30.

A growing middle class and heightened standards of living creates a demand for modern technology, high quality products and services. Simultaneously, Vietnam is a highly attractive production country due to the low costs of labor compared to other Asian countries.

Entering WTO in 2007 has increased foreign trade and global cooperation in Vietnam. Additionally, a free trade agreement between the EU and Vietnam (EVFTA) and a free trade agreement within the ASEAN community was concluded in 2015. Furthermore, Vietnam concluded a free trade agreement with 11 other Pacific-rim countries including Japan and USA about a Trans Pacific Partnership (TPP) which includes a comprehensive free trade agreement. Both EVFTA and TPP are in the process of ratification and are expected to entry into force in late 2017/early 2018.

These trade agreements will make Vietnam an increasingly attractive market for Danish companies.

To learn more about the free trade agreement between EU and Vietnam, read the EU Delegation in Vietnam’s guideline to help businesses better understand the main outcomes and achievements of the negations here.